A Major Low For Santos Shares (?)

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This story features SANTOS LIMITED.
For more info SHARE ANALYSIS: STO
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Michael Gable of Fairmont Equities believes Santos shares have put in a major low with the share price embarking on a recovery. Is the energy sector building for a major advance later in the year?

By Michael Gable 

The past week was another relatively flat one for markets. Locally, we had some strong jobs numbers which once again raises the question of whether there might be an interest rate hike on the way.

Inflation numbers out of the US also puts in doubt whether the US Federal Reserve will hold off on cutting rates.

In the US, despite the main indices not making much progress, we continue to see the rotation into smaller caps and away from the Mag 7.

Commodities continue to do well but some intraday selling overnight could see some of the resource stocks give back a bit this week.

We continue to believe the oil and the energy sector in general is building up to a big move higher this year.

Today we offer a technical view on Santos ((STO)).

There now appears to be a low in place for STO. In December, it broke under the October low, congested under it and then rallied back higher again (circled) on good volume.

There has also been some bullish divergence in place, which is a positive — this is where the RSI bottomed out in October, and started trending higher before the price bottomed out.

We expect a recovery from here in STO and current levels are a buying opportunity.

The first line of resistance is near $7.00. Initial stops can be considered under the January low at $5.90

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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